According to FX Strategists at UOB Group, there is still room for the pair to test the mid-1.1800s in the short-term horizon.
Key Quotes
24-hour view: “EUR briefly touched a 3-1/2 month high of 1.1815 before surrendering most of its gain to end the day largely unchanged (NY close of 1.1746, -0.03%). Indicators are mostly at ‘neutral’ levels and EUR is expected to trade sideways for today, likely between 1.1715 and 1.1795″.
Next 1-3 weeks: “As highlighted, the recent strength in EUR has scope to extend towards the next resistance at 1.1850. EUR briefly touched a high of 1.1815 during NY hours yesterday and despite the relatively rapid and sharp pullback from the top, the positive underlying tone remains intact. However, short-term indicators are unwinding from overbought conditions and this could lead to a couple of days of consolidation first. As long as the ‘key support’ at 1.1690 is intact (level remains unchanged as previously), we continue to see chance for EUR to move to 1.1850″.
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